AU 62 Exam 2025 Questions and
Answers
Civil Law - ✔✔legal matters not governed by criminal law and that protects rights and
provides remedies for breaches of duties owed to others
ONLY THING INSURANCE COVERS
Criminal Law - ✔✔the branch of the law that imposes penalties for wrongs against
society
Bases for legal liability - ✔✔torts
contracts
statutes
Torts - ✔✔a wrongful act or an omission, other than a crime or a breach of contract, that
invades a legally protected right. Rights include security of a person, property or
reputation, privacy
Types of Torts - ✔✔Negligence
intentional torts
strict liability torts
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 1
,Negligence - ✔✔failure to exercise the degree of care that a reasonable person in a
similar situation would exercise to avoid harming others
Four elements of negligence - ✔✔-a duty owed to another person
- a breach of that duty
- a close casual connection between the negligent act and the resulting harm
- the occurrence of actual loos or damages
intentional tort - ✔✔a tort committed by a person who foresees (or should be able to
foresee) that his or her act will harm another person
example: libel
Strict Liability (absolute liability) - ✔✔liability imposed by a court or by a statute in the
absence of fault when harm results from activities or conditions that are extremely
dangerous, unnatural, ultra hazardous, extraordinary, abnormal or inappropriate
Contracts - ✔✔a legally enforceable agreement between two or more parties in which
each party makes some promise to the other
Breach of contract - ✔✔a failure to fulfill one's contractual promise
example: warranties
Hold-harmless agreement (indemnity agreement) - ✔✔a contractual provision that
obligates one of the parties to assume the legal liability of another party
example: landlord and tenant
Contractual liability - ✔✔liability assumed through a hold-harmless agreement
Statute - ✔✔a written law passed by a legislative body at either the federal or state level
example: workers compensation system
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
, tortfeasor - ✔✔a person or an organization that has committed a tort
Legal duty - ✔✔legal duties of care are created by statutes, contracts and the common
law. Courts ask whether the plaintiff's interests are entitled to legal protection against
the defendant's conduct
-duty extends to all persons and property within the zone of hazard, or area of danger
-moral obligation is not the same as a legal duty; however, if you choose to volunteer
you are held liable
Breach of duty - ✔✔-failure to conform to the standard of care required in the situation
-apply the reasonable person test: what a reasonably cautious person would or would
not do under similar circumstances
- professionals are not liable for mere errors in judgement, provided that they have used
reasonable care in reaching a judgement
-high degree of care: common carriers and people who handle or store dangerous
materials
Proximate Cause - ✔✔a cause that, in a natural and continuous sequence unbroken by
any new and independent cause, produces an event and without which, the event
would not have happened
example Scott vs. Shepard: Shepard set the cause of loss in motion
"But for" Rule - ✔✔based on the determination that the plaintiff's harm could not have
occurred but for the defendant's act
example: but for Joey's actions, Bob would not have been injured
Substantial factor rule - ✔✔determines which of the acts are significant factors in
causing the harm
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 3
Answers
Civil Law - ✔✔legal matters not governed by criminal law and that protects rights and
provides remedies for breaches of duties owed to others
ONLY THING INSURANCE COVERS
Criminal Law - ✔✔the branch of the law that imposes penalties for wrongs against
society
Bases for legal liability - ✔✔torts
contracts
statutes
Torts - ✔✔a wrongful act or an omission, other than a crime or a breach of contract, that
invades a legally protected right. Rights include security of a person, property or
reputation, privacy
Types of Torts - ✔✔Negligence
intentional torts
strict liability torts
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 1
,Negligence - ✔✔failure to exercise the degree of care that a reasonable person in a
similar situation would exercise to avoid harming others
Four elements of negligence - ✔✔-a duty owed to another person
- a breach of that duty
- a close casual connection between the negligent act and the resulting harm
- the occurrence of actual loos or damages
intentional tort - ✔✔a tort committed by a person who foresees (or should be able to
foresee) that his or her act will harm another person
example: libel
Strict Liability (absolute liability) - ✔✔liability imposed by a court or by a statute in the
absence of fault when harm results from activities or conditions that are extremely
dangerous, unnatural, ultra hazardous, extraordinary, abnormal or inappropriate
Contracts - ✔✔a legally enforceable agreement between two or more parties in which
each party makes some promise to the other
Breach of contract - ✔✔a failure to fulfill one's contractual promise
example: warranties
Hold-harmless agreement (indemnity agreement) - ✔✔a contractual provision that
obligates one of the parties to assume the legal liability of another party
example: landlord and tenant
Contractual liability - ✔✔liability assumed through a hold-harmless agreement
Statute - ✔✔a written law passed by a legislative body at either the federal or state level
example: workers compensation system
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
, tortfeasor - ✔✔a person or an organization that has committed a tort
Legal duty - ✔✔legal duties of care are created by statutes, contracts and the common
law. Courts ask whether the plaintiff's interests are entitled to legal protection against
the defendant's conduct
-duty extends to all persons and property within the zone of hazard, or area of danger
-moral obligation is not the same as a legal duty; however, if you choose to volunteer
you are held liable
Breach of duty - ✔✔-failure to conform to the standard of care required in the situation
-apply the reasonable person test: what a reasonably cautious person would or would
not do under similar circumstances
- professionals are not liable for mere errors in judgement, provided that they have used
reasonable care in reaching a judgement
-high degree of care: common carriers and people who handle or store dangerous
materials
Proximate Cause - ✔✔a cause that, in a natural and continuous sequence unbroken by
any new and independent cause, produces an event and without which, the event
would not have happened
example Scott vs. Shepard: Shepard set the cause of loss in motion
"But for" Rule - ✔✔based on the determination that the plaintiff's harm could not have
occurred but for the defendant's act
example: but for Joey's actions, Bob would not have been injured
Substantial factor rule - ✔✔determines which of the acts are significant factors in
causing the harm
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 3
